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On February 2 6 , 2 0 0 9 , C and be limited issued 1 0 year bond with an 8 . 5 %

On February 26,2009, C and be limited issued 10 year bond with an 8.5% coupon rate. At what price did $1000 face value bond trade for on September 9,2014 if the prevailing market rate was 5.8% compounded semi annually? a) $1,115.75 b) $1062.00 c) $1065.37 d) $1071.29 e) $1,108.01

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